Audit Service Sierra Leone

PERFORMANCE AUDIT REPORT ON GENERATION AND COLLECTION OF REVENUE IN THE FISHERIES SECTOR

September 2012 TABLE OF CONTENTS FOREWORD EXECUTIVE SUMMARY 1 Introduction

1.1 Purpose and Scope 1.2 Methods and Implementation

2 Generation and Collection of Revenue

2.1 Overview of the Fisheries sector 2.2 Regulatory Framework 2.3 Fishing Facilities 2.4 Artisanal fishing vessels9 2.5 Semi industrial fishing vessels 2.6 Industrial fishing sector 2.7 Vision and Policy objectives 2.8 MFMR’s Generation and Collection of Revenue 2.9 Revenue collected by Local Councils 2.10 Organisational structure of MFMR 2.11 Resources 2.12 Control of Illegal, Unreported and Unregulated (IUU) Fishing 2.13 Recent Developments

3 Findings

3.1 Poor monitoring of fish revenue collection 3.1.1 No monitoring of fishing activities by M&E Officers 3.1.2 Poor Record Keeping 3.1.3 Coastal councils unable to meet their revenue targets 3.2 Fisheries observers facing various obstacles 3.3 The navy was not able to effectively control EEZ. 3.4 Poor implementation of fishing standards 3.4.1 Inadequate standards of fish landing sites. 3.4.2 Lack of recommended fishing gear

4 Conclusions 4.1 Loss of revenue as a result of poor reporting and monitoring 4.2 Inadequate control over the Marine areas 4.3 Fishing standards not effectively imposed

5 Recommendations 5.1 Finalise drafting of new acts and regulations 5.2 Councils should improve revenue collection 5.3 Promote independence of fisheries observers 5.4 Intensify the fight against illegal fishing 5.5 Develop fish landing site and provide recommended fishing nets

Appendix A List of Persons Interviewed Appendix B Roles and Responsibilities of Key Players Appendix C Organogram Appendix D Response from MFMR

FOREWORD As the Supreme Audit Institution (SAI) of Sierra Leone, the Audit Service Sierra Leone (ASSL) is set on expanding the scope of external audit. In addition to our traditional role in Regularity Audit, we have established Performance Auditing as one of the services provided by ASSL. To achieve this, we have put in significant efforts into upgrading the professional skills in the organisation and modernising the audit methodology.

In submitting this Performance Audit Report for tabling, I refer to the constitution of Sierra Leone in which Section 119 (2) states ‘‘The public accounts of Sierra Leone and of all public offices including the courts, the accounts of the central and local government administrations, of the Universities and public institutions of like nature, any statutory corporation, company or the body or organisation established by an Act of Parliament or statutory instrument or otherwise set up partly or wholly out of Public Funds, shall be audited and reported on by or on behalf of the Auditor General, and for that purpose the Auditor-General, or any person authorised or appointed in that behalf by the Auditor-General shall have access to all books, records, returns and other documents relating or relevant to those accounts’’.

I further refer to the Government Budgeting and Accountability Act of 2005, Section 63 (1) Sub section (1e), which states ‘‘In his examination of the Final accounts the Auditor-General shall ascertain that in his opinion, financial business has been carried out with due regard to economy in relation to results achieved’’, and;

Sub section 66 (4) further states that ‘‘Nothing in this section shall prevent the Auditor-General from submitting a special report for tabling in Parliament on matters that should not await disclosure in the annual report’’.

In line with my mandate as described above, we have undertaken this Performance Audit on Generation and Collection of Revenue in the Fisheries sector by the Ministry of Fisheries and Marine Resources, assessing whether revenue is being generated and collected in line with the potential of the fishing sector. Lara Taylor-Pearce FCCA (Mrs.) Auditor General of Sierra Leone EXECUTIVE SUMMARY The Ministry of Fisheries and Marine Resources (MFMR) generates revenue for the country through collection of licence fees, royalties, transhipment fees, registration fees for fishing vessels, fines, fish processing establishment fees, fish discharge/landing fees and charges on exported fish.

The Fisheries sector of Sierra Leone contributes about 10 percent to the Gross Domestic Product. However, over the years, this revenue sector has been unable to fully optimise its potentials and therefore has stimulated concerns amongst Sierra Leoneans such conditions therefore motivated a Performance audit to be conducted on the Ministry.

The audit is based on the revenue generation and collection by MFMR and Local Councils operating in coastal districts around the country to which revenue generation in the artisanal fishing industry has been entrusted. During the course of the audit, we arrived at the following findings:  The councils have not established and implemented adequate monitoring and controls over fish revenue collection ,  Fisheries observers on board the licensed vessels often find themselves in a weak position in relation to the captain of the ship when trying to enforce the correct fishing practices.  Patrolling of Sierra Leone’s fishery waters has not been effective Monitoring of fishing activities by the Ministry has not ensured good fishing standards.

In order to improve on this situation we recommend that the following issues be addressed: MFMR should approve and issue the new Fisheries Regulations as soon as possible and complete the drafting of a bill for the amendment of the 1994 Fisheries Act. The Local Councils should ensure that licensing fees are collected annually in accordance with pre-defined and sustainable tariffs. To facilitate this, databases with details of canoes, fees, revenue collected, etc should be developed and monitoring by M&E officers improved. To promote the independence of the fisheries observers, MFMR should ensure that their salaries are paid by them and not by the fishing companies. MFMR should also consider how back up support to the fisheries observers could be improved when captains do not want to obey the observers.

MFMR should, together with the Maritime Wing of the Armed Forces, develop a comprehensive plan for effective surveillance of Sierra Leone’s fishery waters. The plan should take into account the need for patrolling with navy vessels as well as the cooperation with external players and the use of VMS, AIS, etc. 1 INTRODUCTION 1.0 Purpose and Scope Fishing provides employment opportunities for persons residing in the coastal communities of Sierra Leone. The fishing industry is a major contributor to the economy, contributing about 10 percent to the Gross Domestic Product.

This audit was motivated by the fact that the country loses large amounts of money due to illegal fishing. The annual losses have been estimated to be approximately $30 million. This has stimulated concerns that the country is losing out on revenue and motivated this performance audit on the Ministry of Fisheries and Marine Resources (MFMR). The audit objective was to assess whether the programmes and activities of MFMR and its counterpart coastal councils, to improve Generation and Collection of Revenue in the fishing sector were successful.

The focus of the audit was on determining if:  MFMR and coastal councils have established and implemented adequate monitoring and controls over fish revenue collection;  Fisheries observers have successfully performed their duties in accordance with the Fisheries Regulation;  MFMR has effectively controlled Illegal, Unreported and Unregulated (IUU) fishing; and  MFMR’s monitoring of fishing activities has ensured good fishing standards;

1.2 Methods and Implementation In order to meet the audit objective and arrive at an assessment of whether MFMR revenue generation was efficient and effective, the team selected major fishing stations and fish landing sites that are involved in artisanal fishing activities. These included Gbondape and Solima in the Pujehun District and Shenge and Tisana in the Moyamba District. In the case of industrial fishing activities, two fishing companies predominantly engaged in industrial fishing exercises were selected. These two companies, Okeky and Sierra Fishing companies account for an important part of Government`s revenue from fishing activities.

To assess the effectiveness of MFMR, the team conducted interviews, reviewed documents and made physical observations. Documents were reviewed to obtain an understanding of the MFMR’s programmes and operations and to get an in-depth understanding of the management of revenue generation and collection. Document were also to confirm the information obtained during interviews and to source information not directly obtained through interviews.

Key personnel at the headquarters in Freetown, other fisheries stakeholders and Council representatives were interviewed to obtain an understanding of the systems and operations of MFMR. See Appendix A for a list of persons interviewed.

Physical observations were made to assess the state of fish landing sites and to be able to determine whether MFMR’s outstations were up to the fish processing standards prescribed in the Fishery Products Regulations of 2007.

A draft version of this report was sent to MFMR for their comments. In their response dated 26 July 2012 MFMR clarifies some of the issues raised in the report. MFMR’s response is attached as Appendix D. 2 GENERATION AND COLLECTION OF REVENUE 2.1 Overview of the Fisheries sector The Sierra Leone Territorial waters are richly endowed in biodiversity with abundant species of tropical fish. Some 200 species have been identified in the country’s Exclusive Economic Zone (EEZ). About 80 of these species of fish have commercial value.

The Government places a high priority on the fishing industry as a growth sector with a huge potential for contributing to food security, employment and fiscal returns. The fisheries sector contributes 10% of the country’s Gross Domestic Product (GDP) and fish is an important source of protein. It supplies about 80% of the total consumption of animal protein. Small-scale artisanal fishery is a significant source of employment and rural income. The Fishing sector in Sierra Leone is divided into artisanal, semi industrial and industrial sectors. MFMR has an oversight responsibility for all the sectors. The Draft Fisheries Regulations, 2010 gives the following definitions:

 Artisanal fishing vessels include any local fishing vessel, canoe or un-decked vessel with an overall length of not more than 10 meters which is motorised or not motorised,  powered by an outboard or inboard engine not exceeding 25 horsepower, sails or paddles. Vessels used for recreational fishing are not included;  Semi-industrial fishing vessels include a) decked fishing vessels with an overall length of less than 20 meters, a weight of less than 50 GRT and an inboard engine; and b) un-decked fishing vessels with an overall length of not less than 10 meters and not more than 20 meters, a weight of less than 50 GRT and powered by engines of at least 25 hp;  Industrial fishing vessels are decked fishing vessels with an overall length of more than 20 meters and an inboard engine.

2.2 Regulatory Framework MFMR is in charge of undertaking all fisheries management and development activities. The legal framework for fisheries management in Sierra Leone is the 1994 Fisheries (Management and Development) Act, complemented by the Fisheries Regulations from 1995 and amended in 2007. New Draft Fisheries Regulations were prepared in 2010. The Local Government Act of 2004 regulates the functions of local councils.

The Fishery Products Regulations, 2007 set the standards for hygienic handling of Sierra Leone’s fish and fish products. The regulations mirror the hygienic standards of the European Union. Meeting these standards would help make fish products eligible for export into the EU market.

One condition for meeting the requirements set by EU to guarantee the sanitary condition of fishery products from Sierra Leone destined for export to the EU, is that the Government identifies a Competent Authority to carry out inspection service for verifying and certifying compliance of fishery products from Sierra Leone to EU standards. Section 2(1) of the Fishery Products Regulations 2007 states that ”In application of section 110 of the Act (Public Health Act, 1960), the Food Unit within the Environmental Health Division of the Ministry of Health shall be the competent authority in Sierra Leone incorporating the inspection service for verifying and certifying compliance of fishery and aquaculture products with the requirements of these Regulations and is generally empowered to enforce these Regulations”.

The Fisheries Act, 1994 prescribes the minimum allowable mesh sizes of gears/nets used for fishing.

Table 1: Minimum Allowable Mesh Size

Fisheries Gear/net Minimum allowable size

Industrial 1. Shrimp trawler 1. 42mm stretched mesh fisheries 2. Demersal trawler 2. 60mm stretched mesh 3. Seine nets 3 32mm stretched mesh Artisanal Seine nets 43mm stretched mesh Fisheries, coastal areas Riverine areas 1. Seine nets 1. 50mm stretched mesh 2. Multifilament gill nets 2. 50mm stretched mesh 3. Monofilament gill nets 3. 75mm stretched mesh MFMR has developed Draft Fisheries Regulations, 2010, in order to upgrade licensing fees, landing and other financial obligations of commercial fishing operators.

To ensure that these regulations, though still in their draft state, are enforced, MFMR has held consultations with all its stakeholders to comply with the updated issues in the regulations. As a result, the MFMR implements the regulatory guidelines prescribed in the draft regulations in their operations with fishing companies.

Illegal Unregulated and Unreported (IUU) fishing that has resulted in an estimated loss of $30m annually can take several different forms: a. Having a valid license but fishing in a prohibited area b. Fishing without a valid license c. Fishing with the wrong fishing gears d. Using wrong fishing practices e.g. pair trawling, this is a fishing activity carried out by two boats, towing one warp (towing cable) each.

It is also illegal for industrial vessels to fish in the Inshore Exclusion Zone (IEZ). IEZ as referred to in section 2 of the Act, consists of all waters seawards from the coast of Sierra Leone to the line connecting the following coordinates of latitude and lon gitude as marked in the chart in the First Schedule of the Fisheries Regulations:

In other words, the IEZ is from the coast to 5-10 nautical miles seaward. Legal fishing can be done in the Exclusive Economic Zone (EEZ) that is 200 nautical miles from the coastline, corresponding to an area 215,611km2, i.e. three times bigger than Sierra Leone’s land area which is 71,740km2.

2.3 Fishing Facilities MFMR is entrusted with an oversight responsibility of making sure that required fishing facilities such as jetties, fish processing facilities, fishing gear are available in the respective fishing communities and monitored to uphold good fishing standards. In view of this, fishing nets deemed by fishing experts to be a threat to the conservation of marine resources have been banned in line with Sierra Leone’s obligations as a signatory to the United Nations convention on the Law of the Sea. Specific categories of fishing nets have been recommended to avoid the use of the banned nets.

Gill Nets for Artisanal Fishing. A landing site is a place where artisanal fishermen land their day’s catch. At the landing sites there should be jetties, meeting the standards prescribed in the Fishery Products Regulations, 2007, for discharging fish for local consumption and for export to foreign markets. Below are the number of landing sites according to MFMR.

Table 2. Landing sites 2009 District Landing Sites Western Area Rural 32 Western Area Urban 14 Port Loko 133 Kambia 50 Pujehun 65 Bonthe 316 Moyamba 63 TOTAL 673

Source: National Fisheries frame survey 2009.

2.4 Artisanal fishing vessels Artisanal fishing vessels include three different types of canoes. The smallest is the Kru canoe with a crew of one to two people. The Standard 1-3 canoes can accommodate a crew of one to three people. The Standard 3-5 canoes accommodate a crew of three to five people. Table 3 shows the actual number of artisanal fishing vessels in different coastal districts. Table 3: Artisanal Fishing vessels

District Kru Stand Stand Total 1-3 3-5 Western 397 554 226 1177 Area Port Loko 243 1377 284 1904 Kambia 9 709 198 916 Moyamb 96 605 307 1008 a Bonthe 438 2063 522 3023 Pujehun 177 365 20 562 Total 1360 5673 1557 8590

Source: National Fisheries frame survey 2009.

According to available data for the artisanal sector there are more than 17,000 artisanal fishermen and 80,000 ancillary workers (mostly women) engaged in traditional fish processing. 2.5 Semi industrial fishing vessels There are two types of semi-industrial fishing vessels, namely Standard 5-10 canoes and Ghana Boats.

In 2010 a total of Le 25million was collected as semi industrial fishing licence by MFMR.

Table 4: Semi-industrial fishing vessels District Std 5-10 Ghana boats Total canoes Western Area 288 164 452 Port Loko 165 13 178 Kambia 76 24 100 Moyamba 95 4 99 Bonthe 75 5 80 Pujehun 6 9 15 Total 705 219 924 Source: National Fisheries frame survey 2009

2.6 Industrial fishing sector Industrial fishing ’’means any large scale fishing or related activities using an Industrial fishing vessel”. An industrial fishing vessel is “a decked fishing vessel with a length of over 20 meters and an inboard engine”.

The industrial fishing subsector is highly capital-intensive and foreign-dominated. It constitutes the mainstay for revenue generation from fisheries. It is estimated that the industrial fisheries sector employs about 1000 people and contributes between 15-20 % of total fish production in the country.

Total estimated fish production is about 20,000 Mt in the industrial sector and comprises of mainly two categories of fish; Pelagic fishes that live near the surface or in the water column of coastal waters and Demersal fishes live on or near the bottom of the sea. here are also important catches of shrimps. The Ministry generated revenue through the industrial sector by two main sources i.e. exporting of fish and issuance of licences to fishing companies for their fishing vessels.

According to the Sierra Leone Investment and Export promotion Agency earnings from the export of fish and shrimps increased from US$0.44 million in 2007 to US$2.05 million in 2008. Table 5: Value of Exports USD (‘000s) Product 2007 2008 Fish and Shrimps 443.8 2,045.4 MFMR calculates the licence fee based on the type of the vessel, multiplying the appropriate fee by the gross registered tonnage (GRT). Charges are paid for a period which must not exceed one year.

Table 6: Registered industrial Fishing Vessels and Estimated Total Revenue 2011

Category of No of Total Royalties Licence Calculation Estimated Vessel Vessels GRT per vessel Fees Revenue ($) Trawler(Fish) -above 250 GRT 6 - 18,750 $50,000 per (50,000+18750)*6 412,500 vessel -below 250 GRT 19 1866 18,750 1866*187.5 349,875 $187.50 per 19*18750 356,250 GRT

Trawler (Shrimper) 0 ------above 250 GRT 14 1752 22,500 $250 per 1752*250 753,000 -below 250 GRT GRT 22,500*14 Tuna Long Liner 9 - - $15,000 9*15,000 135,000

Tuna purse 40 - - $22,500 40*22,500 900,000 seiners Carrier 5 - - $22,500 5*22,500 112,500

Tuna small 4 - - $25,000 4*25,000 100,000 pelagic

Total 97 - - - - 3,119,125

If a fishing vessel is licensed for one particular type of catch an obligation is placed on it to land and sell part of its by-catch (i.e. catch for which it is not licensed) on the local market. The Draft Fisheries Regulations, 2010 prescribes the catch of a vessel operating in the industrial fishing sector that shall be landed for sale in the local market for each fishing trip. When a vessel is authorised to carry out transhipment, the landing obligations as state above do not apply. The following landing obligations apply for each designated class of vessel in respect of the total by-catch for each fishing trip. Table 7: Landing obligation for catch to be sold in Sierra Leone by category of vessels

Type of Vessel Product Percentage % Shrimp and Fish 60% of total catch Cephalopod trawlers Shellfish 5% of total shellfish catch Fish trawlers Fish 30% of total catch Shellfish 3% of by-catch

Tuna vessels By-catch 10% of total catch Small pelagic vessels By-catch 10% of total catch

Sierra Leonean fish exports are not allowed to enter the European market. Fish from Sierra Leone can nevertheless still enter Europe legally through licensed vessels that have a so called ‘DG Sanco’ listing, allowing them to land their catch in the EU. This could be done either directly or via transhipments to other vessels. It is also believed that large quantities of illegally caught Sierra Leonean fish enter the European markets. In either case Sierra Leone does not get any revenue from these exports.

2.7 Vision and Policy objectives MFMR’s vision is to ensure the sustainable use and management of the fish resources of Sierra Leone.

The policy objectives of MFMR include the following:  improving national nutrition and food security through increased fish production based on responsible fishing and reduction of spoilage  increasing employment opportunities  enhancing livelihoods in fishing communities with emphasis on women and youth  improving skills in the fishing communities and increasing wealth through rational management based on scientific research  promote marine and inland artisanal fishery for local affordable animal protein production in Sierra Leone  strengthening regional and international collaboration in the sustainable use, management and conservation of fish resources in shared water bodies

In addition, the 2010 revised fisheries policy and operational framework identifies four objectives which can enhance the management of artisanal fishery:  Conservation and sustainable use of fish resources  Promotion of co-management and collaboration with stakeholders  Diversification and increase in international trade of fish and fishery products and  Implementation of cost-effective and functional extension services for improved management of fish resources.

2.8 MFMR’s Generation and Collection of Revenue Royalties, transhipment, registration fees for fishing vessels, fines, fish processing establishment fees, fish discharge/landing fees are charges imposed on fishing activities by the Government to raise income. Fishing companies wishing to exploit these resources have to send in their application for registration of each vessel they want to register. If approved after meeting the registration criteria they will pay their licence fees to the National Revenue Authority (NRA) and be issued with a receipt that is presented to the MFMR Account Unit for record purposes. A licence is then issued to the company. In the case of transhipment any fishing company wishing to tranship should notify the Director not less than 72 hours prior to the intended transhipment. The operator shall apply for a transhipment or loading authorization, in accordance with the Draft Fisheries Regulations 2010 and in the form set out in the eleventh schedule of the regulations, and pay the required fee.

The following conditions should be met before a fishing licence is issued to a fishing company for their fishing vessels in the industrial fishing sector;  The first step in getting a licence is to send in an application for registration to MFMR.  All industrial fishing vessels, applying for licences, must first be registered with the Sierra Leone Maritime Administration before their applications can be considered.  A completed application form for each vessel should be submitted along with the (certified) ship’s documents, containing vital specifications of the vessels (viz. GRT, vessel length, width, fish hold capacity, horse-power, etc). The form is available at the department of fisheries.  A pre-licensing inspection should be conducted on the vessel, principally to ascertain the specifications of the vessel and gear specifications, including observer accommodation, sanitation and hygienic condition.  The licence giving them the right to carry on fishing for the duration of time stated in the licence will be issued based on satisfactory pre-licensing inspection report and payment of full licence fee (and where applicable the royalty fee).  In addition, prospective fishing companies should: a. Produce evidence of an account in Sierra Leone b. Employ 45% Sierra Leoneans as crew members on each licensed vessel.

The Draft Fisheries Regulations give the Director of Fisheries the power to “require the operator of any fishing vessel, as a condition of license, to install, maintain and operate in accordance with such conditions as may be prescribed and such other conditions that may be required by the Director, an automatic location communicator (ALC) or other device or equipment that is an integral component of a vessel monitoring system at all times while the fishing vessel is in the fishery waters or, in respect of a Sierra Leone fishing vessel , in areas beyond national jurisdiction or such other areas as may be described or agreed in an international agreement or international conservation and management measures.”

In the case of fines levied by the government on defaulters, charges are brought to them according to the laws that cover the offences. Defaulters pay the fines to the NRA, monies collected including fines and registration fees are paid into the Governments consolidated account in the Bank of Sierra Leone.

Regulations, controls and management of fisheries related revenues are the responsibility of MFMR. MFMR has a Statistics Unit responsible for processing and keeping all fisheries related records gathered by fisheries extension workers. To monitor the activities on board the fishing vessels, fisheries observers are placed on all licensed industrial vessels. They collect and record catch data in logbooks; in addition they send daily catch and effort data (means of making a catch including shooting and hauling of the net, the duration of shooting and hauling time, etc) to the Statistics Unit through the radio officer at MFMR. Dock observers at major landing sites collect catch landings for the Statistics Unit and supervise transhipment activities, including collection of data on the amount of fish transhipped.

The Ministry is also responsible for issuing licences to semi-industrial fishing boats i.e. standard 5 to 10 canoes and Ghana Boats, whereas the licensing of small canoes has been devolved to the Local Councils.

2.9 Revenue collected by Local Councils The collection and management of fisheries related revenue in the artisanal fishing industry has been transferred to the Local Councils. Section 56 of LGA, states that ”A Local council shall issue a licence to any person in a locality who […] (b) owns any cart, wagon or other non- motorised vehicle or canoe; … ’’ The Local Government Act (LGA) of 2004 re-establishes Local Councils and provides for the decentralisation and devolution of functions, powers and services to Local Councils. Regulations regarding the assumption of functions are set out in Statutory Instrument No.13 of November 2004. See table 8.

Table 8: Statutory Instrument No.13.

Main functions Activities to devolve Year of assumption of functions by Local Councils Licensing of small a. Licensing of canoes 2005 canoes and attendant b. Net destruction fishing gear Establishment and a. Identification of sites 2008 management of fish b. Construction of fish ponds ponds and inland lakes c. Management of fish ponds d. Management of inland water bodies including lakes Establishment and management of fish ponds which was devolved to the local councils in 2008, was not included in our audit scope.

Revenue collectors issue licences on behalf of the council. This is done on the landing site to save the boat owner from the burden of having to come to the council to obtain the licence and to make those who do not want to licence their boats to comply with the rules. Licences are issued to new boats before they are put into use. Renewal of licence is done annually. The Council sets the rates and decides the time they want to collect the licence fees. In the same vein, Monitoring and Evaluation Officers of the councils should monitor the revenue collection in the same way as they monitor other council activities.

Local Councils get their revenue from the fishing sector through licensing of small boat. Boat owners should register their fishing boats in other to make them legal to carry out fishing activity in the country. Revenue collected is paid directly into the council’s account.

Before a licence is given to an artisanal fishing boat it needs to be inspected by the Marine officer to ensure that it is sea worthy.

2.10 Organisational structure of MFMR MFMR is headed by a Minister (political head), a Permanent secretary (administrative head) and a Director of Fisheries (the professional head) who has the technical knowledge in fisheries. The Director, subject to the policy guidance of the Minister is responsible for the management, planning and development of research on fisheries and other aquatic resources. MFMR’s overall responsibility is the control, development and conservation of all aquatic organisms. Refer to appendices B and C for roles and responsibilities and organogram

2.11 Resources MFMR receives their major funding through budgetary allocations from the Ministry of Finance and Economic Development (MOFED). The revenue it generates through Licences, Royalties, Transhipment fees, Fish Health Certificates, Discharge Fees, Fines, Sales of Confiscated Catch, Clearance Fees, Export Fees and By-Catch charges is paid to NRA that pays it into the government’s consolidated fund. A total of Le 11,332,983,340 was collected in 2010 and Le 12,798,458,432 collected in 2011.

Table 9. Government allocations to MFMR for fishing activities

Years Details Allocation 2007 Fish Res./Expl.Fishing Dev.Ext 214,000,000 2008 Fish Res./Expl.Fishing Dev.Ext 416,395,400 2009 Fish Res./Expl.Fishing Dev.Ext 953,000,000 2010 Fish Res./Expl.Fishing Dev.Ext 2,806,822,520 Source: Expenses Analysis Report

MOFED (through the Local Government Finance Department) funds the Coastal councils from the national budget for the artisanal fishing sector.

Table 10: Transfers to coastal councils for fisheries and marine resources

Council 2007 2008 2009 2010 Bonthe District 3,211,695 7,048,485 9,581,198 9,807,525 Bonthe City 3,211,695 7,048,485 9,581,198 9,807,525 Freetown City 4,091,185 8,978,641 12,204,912 12,493,217 Kambia District 4,385,425 9,624,389 13,082,694 13,391,735 Moyamba District 3,211,695 7,048,485 9,581,198 9,807,525 Port Loko District 4,385,425 9,625,389 13,082,694 13,391,735

Pujehun District 3,211,695 7,048,485 9,581,198 9,807,526

Western Area Rural 4,091,185 8,978,640 12,204,909 12,493,214 District National Total 29,800,000 65,400,000 88,900,000 91,000,000

Source: Transfers to councils for Fisheries and Marine Resources 2007-2010

In addition to the transfers of devolved funds the revenue collected by the councils is also deposited directly into the council’s account. 2.12 Control of Illegal, Unreported and Unregulated (IUU) Fishing The Programme Management Unit (PMU) of the African Development Bank (ADB)- Artisanal Fisheries Development Project Sierra Leone, MFMR and the navy, i.e. the Maritime wing of the Republic of Sierra Leone Armed Forces (RSLAF), have signed a Memorandum of Understanding (MOU). The task of the MOU is to monitor and protect both the offshore and inshore areas of the Sierra Leonean waters to prevent poaching by unlicensed fishing vessels and illegal fishing by licensed fishing vessels. Port monitoring shall be done exclusively by MFMR and when necessary the navy will be called upon to provide support to prevent pirate attacks on fishing vessels, smuggling of illegal fishing materials and illegal fishing practices by artisanal fishermen.

The staff strength of the navy is 294 and it has a fleet of 14 naval vessels to protect Sierra Leone’s territorial waters from IUU fishing and other illegal activities. See table 10 and illustrations below for a description of Sierra Leone’s naval fleet.

The naval wing had the following equipment at the time of the audit:

Table 11. Naval vessels TYPE QUANTITY PB 105 1 Cutters 3 Inshore patrol craft 10

PB105 (60 nautical miles vessel) Cutter

Inshore Patrol Craft To a limited extent the navy also has access to the following technical aids to promote an effective surveillance system:  Automatic Information System (AIS) this is used to monitor marine traffic. It is used as a planning tool to view the entire coast line of Sierra Leone.  Navigation Aids like GPS, Eco Sounder and Radar  Vessel monitoring systems (VMS) VMS are used in commercial fishing to allow environmental and fisheries regulatory organisations to monitor the position, time at a position, course and speed of fishing vessels. They are a key part of monitoring control and surveillance (MCS) programmes at national and international levels. 2.13 Recent Developments The Government together with the African Development Bank (ADB) under the Artisanal Fisheries Development Project (AFDEP) are constructing fish landing facilities at Shenge in Moyamba, Gbondape in Pujehun, Tombo and Goderich in the Western Rural area and at Bonthe City. The project aims at providing the necessary facilities that would ensure growth in the fisheries sector. Below are some of the structures that have been put in place to ensure that fish caught in Sierra Leone are properly processed

Fish Drying Hall, not yet in use (30/3/2012)

Tombo fish washing hall, not yet in use (30/3/2012) In addition, the Government has signed an agreement with the Dutch firm Precon to facilitate access to EU markets for Sierra Leonean fish and fisheries products. Precon specialises in hygiene, food safety and consumer health protection.

3 FINDINGS 3.1 Poor monitoring of fish revenue collection 3.1.1 No monitoring of fishing activities by M&E Officers The Monitoring and Evaluation officers should monitor all council activities including fishing activities such as revenue collection. According to interviews conducted with M&E Officers at the District Councils, no monitoring activities were done for the revenue collection for the artisanal fishing sector.

3.1.2 Poor Record Keeping Section 100 Subsection (1) of the Financial Management Regulation of 2007 states that “The Accountant General or any sub treasurer appointed by him shall keep in his office, batch sheet, or other records showing the allocation of receipt and payment, journals and ledgers together with such other books and registers as may be necessary for the proper maintenance and production of the accounts of the government”.

Section 81 Subsection (1) of the Local Government Act of 2004 states that “Every local council shall keep proper books of accounts and proper records in relation to the accounts and shall, within the first quarter of the next financial year, prepare a statement of its final accounts in conformity with existing financial regulations”.

Notwithstanding the above regulations, MFMR was unable to provide the auditors with documents showing yearly revenue generated and collected from fishing activities for 2007 and 2008. Such documents were only produced for 2009 and 2010. Requested lists of registered fishing companies and the type of fishing vessels operated by such companies could be provided for 2011, but not for the period 2007-2010.

In the district councils visited (Moyamba, Pujehun and Western Area Rural), documents showing the number of boats, licensed in the period 2007-2011, were not maintained even though the strategic plans included a programme for data collection of fishing boats.

It was also found that different councils set different licensing fees and that the councils, in addition to the functions devolved by LGA, also collect revenue from large canoes and Ghana boats.

3.1.3 Coastal councils unable to meet their revenue targets Section 40 (1) of the Financial Management Regulation 2007 states that “the Vote Controller is personally responsible for ensuring that adequate safeguards exist and are applied for the assessment, collection of and accounting for such revenue and other public money relating to their department or offices”.

Review of the budget and income statement of the Pujehun District Council disclosed that the targets set for 2008 to 2010 were not achieved. See table 12.

Table 12. Actual and Targeted Revenue of Pujehun District Council PERIOD TARGET in Le. ACTUAL in Le. ACTUAL in %

2008 63,000,000 20,321,500 32

2009 66,150,000 19,960,000 30

2010 69,457,500 23,810,000 34

Source: Generated from Budget and Income Statement

According to the finance officer there was only one revenue collector in the district at the time of the auditors’ visit in January 2011. A similar situation was observed in Moyamba. There were no assessments made by the Chief Administrators to show how many revenue collectors would be needed to increase revenue collection in Moyamba and Pujehun Districts. 3.2 Fisheries observers facing various obstacles The Draft Fisheries regulations, 2010, 32(d) indicates that “the operator shall report the vessel’s position, catch and such other information that may be required by the Director, to the Director by High Frequency Radio every 24 hours while in the fisheries waters’’.

Interviews with fisheries observers revealed that records were sent every day to MFMR but that there were frequent problems with “stubborn” captains, language barriers complicating communication, and difficulties in making the captains obey the instructions given by the observers.

3.3 The navy was not able to effectively control EEZ. Information gathered during the audit highlighted that out of Sierra Leone’s total coast line of 210 nautical miles (389 km) only 70 nautical miles could be patrolled. At night no patrolling at all was possible because of the lack of equipments such as night vision goggles, etc. The remaining 140 nautical miles could not be policed because of the limited reach of the existing vessels. Thus due to the limited capacity of the vessels most of EEZ remained out of reach for the navy. At the time of the audit the navy’s largest vessel that has a capacity to travel 60 nautical miles, was not operational. Two of the three cutters and five of the ten inshore patrol crafts were also not in a good working condition. See summary in table 13. Table 13: Status of naval vessels 2011 TYPE QUANTITY STATUS

PB 105 1 Not operational (60 Naut. miles vessel) Cutters 3 1 operational, 2 in need of repair

Inshore patrol craft 10 5 operational, 5 in need of repair

3.4 Poor implementation of fishing standards 3.4.1 Inadequate standards of fish landing sites. According to the Fishery Products Regulations 2007 Section 75(1) ‘’Establishments, preparing or processing fishery products should be located on sites,  Which can be maintained free of floods, smells, dust, smoke and other types of  pollution or contamination, whether physical, chemical or microbiological;  Where neighbouring buildings, operations and land use present no source of potential contamination, for the hygienic operation of the establishment.”

Fish landing site at Tombo 30/3/2012

The picture above shows the state of the landing site at Tombo, which is not in line with the Fishery Product Regulations 2007. Also, the audit team visited a number of other landing sites, most sites did not have jetties that were in good hygienic conditions. In addition community people often made use of the beaches as lavatory and unpleasant wastes littered the beach. See table 14 for landing sites visited .

Table14. Status of landing sites visited Landing sites Required standard Current status

Gbondape Incomplete jetty, and unhygienic Should have a jetty in good landing site Kallu (Yekomo hygienic condition and a Poor condition of jetty and clean landing site Kpukumu Krim) unhygienic landing site Solima Poor condition of jetty and unhygienic landing site Shenge (fisheries) Ongoing construction of a fishing complex & a jetty in its advanced stage. Tissana point Poor condition of jetty and unhygienic landing site. Tissana wharf Poor condition of jetty and unhygienic landing site Tombo Poor condition of present jetty. Ongoing construction of fishing complex.

Unhygienic handling of fish at Tombo 30/3/2012

3.4.2 Lack of recommended fishing gear MFMR “Fisheries Management and Development Act 1994, indicates the minimum allowable mesh sizes of gears/nets to be used. Illegal nets were confiscated and burnt in 2011 by joint teams from councils and MFMR representatives. MFMR is responsible to ensure the use of recommended fishing nets in accordance with the act. At the time of the audit such nets had not

been made available to the fishermen. Interviews held with fishermen confirmed that they lacked the recommended fishing nets for carrying out sustainable fishing. As such some of them had given up fishing and according to residents of Sulima a large number of fishermen were out of work. See Appendix D (pg.38) the clarification made by MFMR in their response. 4 CONCLUSIONS 4.1 Loss of revenue as a result of poor reporting and monitoring MFMR’s inability to provide historical data on revenue and licensed fishing vessels indicate weaknesses in reporting and planning. Without knowledge of such data it will not be possible to properly analyse and understand development trends in the fishing sector and to take corrective measures when necessary.

Similar problems were noted at the council level with a lack of data on boats eligible for licensing and on revenue collected. This problem was further aggravated by different fees in different councils, frequent changes to the fees and too few revenue collectors. The lack of data will inevitably make the councils’ revenue collection more strenuous and time consuming.

The issue of licensing of semi-industrial vessels remains unresolved with the councils currently collecting revenue although that responsibility was never formally devolved to them. The failure to address this problem can be directly linked to delays in issuing the new Fisheries Regulations and in amending the Fisheries Act of 1994.

4.2 Inadequate control over the Marine areas Illegal (non-licensed) fishing vessels are still able to enter Sierra Leonean waters undetected and the fisheries observers on board the licensed vessels often find themselves in a weak position in relation to the captain of the ship when trying to enforce the correct fishing practices.

The navy would be able to patrol only a fraction of the territorial waters even if all its vessels were in a good condition. With most of its vessels not kept in a working condition there is virtually no policing at all outside the Inshore Exclusive Zone. The fisheries observers also depend on the fishing companies for their accommodation on the vessel and for the payment of their monthly allowance, this will compromise the effectiveness of their work.

4.3 Fishing standards not effectively imposed The hygienic status of fish landing sites, are not in line with required fish handling standards. As a result of this, fish landed or processed at those sites would not be accepted into the EU market. The generally poor condition of the sites also leads to some of the catch being lost and not available for human consumption.

The lack of effective monitoring and control by MFMR’s to ensure the distribution of recommended nets to the fishermen, after their illegal nets were destroyed, forced many fishermen to return to the use of illegal nets again or give up fishing altogether. Many fishermen are unable to renew their licence because they do not have the recommended fishing nets, this also affected the overall revenue generation of the Ministry.

5 RECOMMENDATIONS 5.1 Finalise drafting of new acts and regulations MFMR should approve and issue the new Fisheries Regulations as soon as possible and complete the drafting of a bill for the amendment of the 1994 Fisheries Act.

5.2 Councils should improve revenue collection The Local Councils should ensure that licensing fees are collected annually in accordance with pre-defined and sustainable tariffs. To facilitate this, databases with details of canoes, fees, revenue collected, etc should be developed and monitoring by M&E officers improved.

5.3 Promote independence of fisheries observers To promote the independence of the fisheries observers, MFMR should ensure that their salaries are paid by them and not by the fishing companies. MFMR should also consider how back up support to the fisheries observers could be improved especially in instances when captains do not want to obey the observers.

5.4 Intensify the fight against illegal fishing MFMR should, together with the Maritime Wing of the Armed Forces, develop a comprehensive plan for effective surveillance of Sierra Leone’s fishery waters. The plan should take into account the need for patrolling with navy vessels as well as the cooperation with external players and the use of VMS, AIS, etc.

5.5 Develop fish landing site and provide recommended fishing nets MFMR should continue their efforts to fully implement the Fishery Products Regulations and to meeting the criteria for exports to EU in relation to the standard of fish landing sites.

MFMR should make sure that illegal fishing nets are collected and destroyed on the site. Given that a new form of fishing nets has been recommended it is imperative on MFMR to ensure the availability of recommended nets to all fishing communities at an affordable cost.

Appendix A List of Persons Interviewed MFMR Head Quarters  Assistant Director Fish and Fish products  Senior Accountant  Fisheries Observer/Inspector  Dock Observer  EU project consultant

Western Area Rural District Council  Finance Officer  M & E Office  Fisheries Assistant

Moyamba District Council  Chief Administrator of Moyamba District Council  Finance officer of Moyamba District Council  Revenue collector  Monitoring and Evaluation officer  Chairman, Fisheries and Marine Committee  Fisheries enumerators: Shenge, Tisana Pujehun District Council  Chief Administrator of Pujehun District Council  Finance officer  Monitoring and Evaluation Officer  Revenue collectors of council  Fisheries enumerator; Gbondapie, Solima  Chairman, Fisheries and Marine Committee

Others  General Manager of Okeky fishing company Freetown  Company Secretary of Sierra Fishing company Freetown  Naval Commander Navy Head Quarters  A member of the fishermen’s organisation Moyamba  A member of the fisherman’s organisation Pujehun  Naval Commander at Solima

Appendix B Roles and Responsibilities of Key Players Ministry of Fisheries and Marine Resources The Ministry of Fisheries and Marine Resources (MFMR) is a key ministry responsible to generate revenues from fishing activities and manage the fisheries sector of Sierra Leone.

The Minister (Political Head) MFMR is headed by a Minister who is responsible for the general oversight and implementation of government policies and programmes.

The Permanent secretary (Administrative Head) Is the Vote Controller of MFMR and head of administration. He authorizes all payments on behalf of MFMR, serves as principal adviser to the Minister and is answerable to Parliament.

The Director of Fisheries (The Professional Head) Is in-charge of policy implementation and serves as the fisheries expert in MFMR. The Director, subject to the policy guidance of the Ministry, is responsible for the management, planning and development of research on fisheries and other aquatic resources of Sierra Leone.

Local Councils The Local Government Act of 2004 (LGA) specifies the functions/activities which were to be devolved to local councils. MFMR was mandated to transfer the management of Artisanal fisheries to Local Councils. In line with this the Chief Administrators of the councils were entrusted with the responsibility of generating and collecting revenues from fishing activities within their jurisdiction. The Chief Administrators are the vote controllers for all activities under the Local councils.

Revenue Collectors It is the responsibility of the councils to employ revenue collectors whose roles are, but not limited to, the following:  To carry out boat registration and licensing;  To collect revenue on behalf of the councils;  To liaise with the marine officers attached to the Councils;  To bank all revenue collected on behalf of the council in the council’s account

Monitoring and Evaluation Officers These are officers attached to every local council in the country to monitor activities undertaken by the Councils.

Fisheries Extension Workers MFMR has workers such as Fisheries Extension Workers posted in areas where fishing activities are prominent. Their functions include, but are not limited to, the collection of data on daily fish catch, fish type, quantity, weight, etc. Information gathered by Fisheries Extension Workers is sent to MFMR’s Statistics unit for computation of annual data. Fisheries observers/Inspectors These observers are attached on-board each fishing vessel operating on the high sea. They collect catch and effort data and record the location of the vessel. They send daily report to headquarters through the High Frequency radio. When their period at sea ends they submit a disembarkation report. It is their duty to make sure that fishing vessels comply with fisheries regulations which include ensuring: that fish is caught only in EEZ and not in IEZ; that appropriate fishing nets are used, and; that vessels used for fishing are hygienically kept.

Dock observers Dock observers must be present in any location where fishing companies intend to discharge their catch. They monitor and supervise, shrimp trawlers, fishing trawlers, tuna vessels and small pelagic vessels landing their by-catch, to ensure that fishing companies adhere to their landing obligations. Presently, they are stationed at Murray Town and Kissy dockyard.

The duties of the observers also include collecting and reporting information for scientific, management and compliance purposes, including:  The species, quantity, size, age, and condition of fish taken;  The methods by which, the areas in which, and the depths at which, fish are taken;  The effects of fishing methods on fish and the environment;  Processing, transportation, transhipment, storage, and disposal of any fish;  The health and quality of fish taken;  Monitoring the implementation of management measures, applicable in international conservation and management measures; and  Any other matters that may assist the Director to obtain, analyze, or verify information for fisheries scientific management and compliance purposes.

Sierra Leone Navy The Sierra Leone Navy under the direction of MFMR does monitoring, control and surveillance of IEZ and EEZ. Those activities involve the following:  Boarding and inspection of fishing vessels.  Monitoring of landing obligations.

The Navy is entrusted with the responsibility of providing maximum protection by patrolling and policing the marine areas against poachers and other illegal fishing practices Appendix C Organogram

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The Audit Service Sierra Leone 2nd Floor, Lotto Building Tower Hill, Freetown Sierra Leone

Website: www.auditservice.gov.sl